vlk/kkj.k Hkkx II [k.m 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY MINISTRY OF LAW AND JUSTICE (Legislative Department)

Transcription

1 jftlvªh lañ Mhñ,yñ 14 REGISTERED NO. DL (N)04/0007/ vlk/kkj.k EXTRAORDINARY Hkkx II [k.m 1 PART II Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 29] ubz fnyyh] cq/kokj] vxlr 6] 2014@ Jko.k 15] 1936 ¼'kd½ No. 29] NEW DELHI, WEDNESDAY, AUGUST 6, 2014/SHRAVANA 15, 1936 (SAKA) bl Hkkx esa fhkuu i`"b la[;k nh tkrh gs ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsa Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 6th August, 2014/Sravana 15, 1936 (Saka) The following Act of Parliament received the assent of the President on the 6th August, 2014, and is hereby published for general information: THE FINANCE (No. 2) BILL, 2014 (NO. 25 OF 2014 ) [6th August, 2014.] An Act to give effect to the financial proposals of the Central Government for the financial year BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows: CHAPTER I PRELIMINARY 1. (1) This Act may be called the Finance (No. 2) Act, (2) Save as otherwise provided in this Act, sections 2 to 77 shall be deemed to have come into force on the 1st day of April, CHAPTER II RATES OF INCOME-TAX 2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2014, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in each case in the manner provided therein. Short title and commencement. Income-tax.

2 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II (2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh rupees, then, (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and (b) the income-tax chargeable shall be calculated as follows: (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased by a sum of two lakh rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income; (iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh rupees, the words two lakh fifty thousand rupees had been substituted: Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this subsection shall have effect as if for the words two lakh rupees, the words five lakh rupees had been substituted. (3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or sub-section (1A) 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be: Provided that the amount of income-tax computed in accordance with the provisions 111A or section 112 of the Income-tax Act, shall be increased by a surcharge, for purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule: Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under this subsection shall be increased by a surcharge, for purposes of the Union, calculated, (a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) 2 of the Income-tax Act, or co-operative society or firm or local authority, at the rate of ten per cent. of such income-tax, where the total income exceeds one crore rupees; (b) in the case of every domestic company, 43 of 1961.

3 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 (i) at the rate of five per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of ten per cent. of such income-tax, where the total income exceeds ten crore rupees; (c) in the case of every company, other than a domestic company, (i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crore rupees: Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees. (4) In cases in which tax has to be charged and paid under section 115-O or section 115QA or sub-section (2) 115R or section 115TA of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for purposes of the Union, calculated at the rate of ten per cent. of such tax. (5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein. (6) In cases in which tax has to be deducted under sections 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I,194-IA, 194J, 194LA, 194LB, 194LBA, 194LC, 194LD, 196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for purposes of the Union, (a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) 2 of the Income-tax Act, or co-operative society or firm, being a non-resident, calculated at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees; (b) in the case of every company, other than a domestic company, calculated, (i) at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees;

4 4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II (ii) at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees. (7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for purposes of the Union, calculated, in cases wherever prescribed, in the manner provided therein. (8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for purposes of the Union, (a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) 2 of the Income-tax Act, or co-operative society or firm, being a non-resident, calculated at the rate of ten per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees; (b) in the case of every company, other than a domestic company, calculated (i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees. (9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) 172 or sub-section (2) 174 or section 174A or section 175 or sub-section (2) 176 of the Income-tax Act or deducted from, or paid on, income chargeable under the head Salaries under section 192 of the said Act or in which the advance tax payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, advance tax shall be so charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in such cases and in such manner as provided therein: Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or sub-section (1A) 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, advance tax shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be: Provided further that the amount of advance tax computed in accordance with the provisions 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First Schedule: Provided also that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB and 115JC of the Income-tax Act, advance tax computed under the first proviso shall be increased by a surcharge, for purposes of the Union, calculated, (a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) 2 of the Income-tax Act, or co-operative society or firm or local authority, calculated at the rate of ten per cent. of such advance tax, where the total income exceeds one crore rupees; (b) in the case of every domestic company, calculated (i) at the rate of five per cent. of such advance tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

5 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 (ii) at the rate of ten per cent. of such advance tax, where the total income exceeds ten crore rupees; (c) in the case of every company, other than a domestic company, calculated (i) at the rate of two per cent. of such advance tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such advance tax, where the total income exceeds ten crore rupees: Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act and such income exceeds one crore rupees, the total amount payable as advance tax on such income and surcharge thereon shall not exceed the total amount payable as advance tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as advance tax on such income and surcharge thereon, shall not exceed the total amount payable as advance tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as advance tax on such income and surcharge thereon, shall not exceed the total amount payable as advance tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees. (10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds two lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) 174 or section 174A or section 175 or subsection (2) 176 of the said Act or in computing the advance tax payable under Chapter XVII-C of the said Act, at the rate or rates in force, (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, advance tax in respect of the total income; and (b) such income-tax or, as the case may be, advance tax shall be so charged or computed as follows: (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or advance tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax or advance tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income were the total income; (iii) the amount of income-tax or advance tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case

6 6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II may be, advance tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, advance tax in respect of the total income: Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh fifty thousand rupees, the words three lakh rupees had been substituted: Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh fifty thousand rupees, the words five lakh rupees had been substituted: Provided also that the amount of income-tax or advance tax so arrived at, shall be increased by a surcharge for purposes of the Union calculated in each case, in the manner provided therein. (11) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for purposes of the Union, to be called the Education Cess on income-tax, calculated at the rate of two per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance universalised quality basic education: Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in subsections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India. (12) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for purposes of the Union, to be called the Secondary and Higher Education Cess on income-tax, calculated at the rate of one per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance secondary and higher education: Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in subsections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India. (13) For the purposes of this section and the First Schedule, (a) domestic company means an Indian company or any other company which, in respect of its income liable to income-tax under the Income-tax Act, for the assessment year commencing on the 1st day of April, 2014, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income; (b) insurance commission means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance); (c) net agricultural income, in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

7 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7 (d) all other words and expressions used in this section and the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings, respectively, assigned to them in that Act. CHAPTER III DIRECT TAXES 15 of of of Income-tax 3. In section 2 of the Income-tax Act, (I) after clause (13), the following clause shall be inserted with effect from the 1st day of October, 2014, namely: (13A) business trust means a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognised stock exchange, in accordance with the regulations made under the Securities Exchange Board of India Act, 1992 and notified by the Central Government in this behalf; ; (II) in clause (14), with effect from the 1st day of April, 2015, (A) for the words in the opening portion capital asset means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include (i) any stock-in-trade, the following shall be substituted, namely: capital asset means (a) property of any kind held by an assessee, whether or not connected with his business or profession; (b) any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992, but does not include (i) any stock-in-trade [other than the securities referred to in sub-clause (b)], ; (B) the Explanation occurring at the end shall be numbered as Explanation 1 thereof and after the Explanation 1 as so numbered, the following Explanation shall be inserted, namely: Explanation 2. For the purposes of this clause (a) the expression Foreign Institutional Investor shall have the meaning assigned to it in clause (a) of the Explanation to section 115AD; (b) the expression securities shall have the meaning assigned to it in clause (h) 2 of the Securities Contracts (Regulation) Act, 1956; ; (III) for clause (15A), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013, (15A) Chief Commissioner means a person appointed to be a Chief Commissioner of Income-tax or a Principal Chief Commissioner of Income-tax under sub-section (1) 117; ; (IV) for clause (16), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013, (16) Commissioner means a person appointed to be a Commissioner of Income-tax or a Director of Income-tax or a Principal Commissioner of Income-tax or a Principal Director of Income-tax under sub-section (1) 117; ; (V) for clause (21), the following clause shall be substituted and shall be deemed of section 2.

8 8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Substitution of new authorities. to have been substituted with effect from the 1st day of June, 2013, (21) Director General or Director means a person appointed to be a Director General of Income-tax or a Principal Director General of Income-tax or, as the case may be, a Director of Income-tax or a Principal Director of Income-tax, under sub-section (1) 117, and includes a person appointed under that sub-section to be an Additional Director of Income-tax or a Joint Director of Income-tax or an Assistant Director or Deputy Director of Income-tax; ; (VI) in clause (24), after sub-clause (xvi), the following sub-clause shall be inserted with effect from the 1st day of April, 2015, namely: (xvii) any sum of money referred to in clause (ix) of sub-section (2) of section 56; ; (VII) after clause (34), the following clauses shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2013, (34A) Principal Chief Commissioner of Income-tax means a person appointed to be a Principal Chief Commissioner of Income-tax under sub-section (1) 117; (34B) Principal Commissioner of Income-tax means a person appointed to be a Principal Commissioner of Income-tax under sub-section (1) of section 117; (34C) Principal Director of Income-tax means a person appointed to be a Principal Director of Income-tax under sub-section (1) 117; (34D) Principal Director General of Income-tax means a person appointed to be a Principal Director General of Income-tax under sub-section (1) 117; ; (VIII) in clause (42A), (A) in the proviso, with effect from the 1st day of April, 2015, (i) for the words a share held in a company or any other security listed in a recognised stock exchange in India, the words and brackets a security (other than a unit) listed in a recognised stock exchange in India shall be substituted; (ii) for the words, brackets, figures and letter a unit of a Mutual Fund specified under clause (23D) 10, the words a unit of an equity oriented fund shall be substituted; (B) after the proviso, but before Explanation 1, the following proviso shall be inserted with effect from the 1st day of April, 2015, namely: "Provided further that in case of a share of a company (not being a share listed in a recognised stock exchange) or a unit of a Mutual Fund specified under clause (23D) 10, which is transferred during the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, the provisions of this clause shall have effect as if for the words "thirty-six months", the words "twelve months" had been substituted."; (C) in the Explanation 1, in clause (i), after sub-clause (hb), the following sub-clause shall be inserted with effect from the 1st day of October, 2014, namely: (hc) in the case of a capital asset, being a unit of a business trust, allotted pursuant to transfer of share or shares as referred to in clause (xvii) 47, there shall be included the period for which the share or shares were held by the assessee; ; (D) after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2015, namely: Explanation 4. For the purposes of this clause, the expression equity oriented fund shall have the meaning assigned to it in the Explanation to clause (38) 10;. 4. In the Income-tax Act, save as otherwise expressly provided, and unless the context otherwise requires, the reference to any income-tax authority specified in column (1) of the Table below shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013 by reference to the authority or authorities specified in the corresponding entry in column (2) of the said Table and such consequential changes as the rules of grammar may require shall be made:

9 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9 TABLE Sl. No. (1) (2) 1. Commissioner Principal Commissioner or Commissioner 2. Director Principal Director or Director 3. Chief Commissioner Principal Chief Commissioner or Chief Commissioner 4. Director General Principal Director General or Director General. 5. In section 10 of the Income-tax Act, with effect from the 1st day of April, 2015, (a) in clause (23C), (i) after sub-clause (iiiac), the following Explanation shall be inserted, namely: Explanation. For the purposes of sub-clauses (iiiab) and (iiiac), any university or other educational institution, hospital or other institution referred therein, shall be considered as being substantially financed by the Government for any previous year, if the Government grant to such university or other educational institution, hospital or other institution exceeds such percentage of the total receipts including any voluntary contributions, as may be prescribed, of such university or other educational institution, hospital or other institution, as the case may be, during the relevant previous year; ; (ii) after the seventeenth proviso, the following proviso and the Explanation shall be inserted, namely: Provided also that where the fund or institution referred to in subclause (iv) or the trust or institution referred to in sub-clause (v) has been notified by the Central Government or approved by the prescribed authority, as the case may be, or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), has been approved by the prescribed authority, and the notification or the approval is in force for any previous year, then, nothing contained in any other provision of this section [other than clause (1) thereof] shall operate to exclude any income received on behalf of such fund or trust or institution or university or other educational institution or hospital or other medical institution, as the case may be, from the total income of the person in receipt thereof for that previous year. Explanation. In this clause, where any income is required to be applied or accumulated, then, for such purpose the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this clause in the same or any other previous year; ; (b) after clause (23FB), the following clauses shall be inserted, namely: (23FC) any income of a business trust by way of interest received or receivable from a special purpose vehicle. Explanation. For the purposes of this clause, the expression special purpose vehicle means an Indian company in which the business trust holds controlling interest and any specific percentage of shareholding or interest, as may be required by the regulations under which such trust is granted registration; of section 10.

10 10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II 10AA A. (23FD) any distributed income, referred to in section 115UA, received by a unit holder from the business trust, not being that proportion of the income which is of the same nature as the income referred to in clause (23FC); ; (c) in clause (38), (i) after the words unit of an equity oriented fund, the words or a unit of a business trust shall be inserted; (ii) after the proviso but before the Explanation, the following proviso shall be inserted, namely: Provided further that the provisions of this clause shall not apply in respect of any income arising from transfer of units of a business trust which were acquired in consideration of a transfer referred to in clause (xvii) In section 10AA of the Income-tax Act, after sub-section (9) but before the Explanation 1, the following sub-section shall be inserted with effect from the 1st day of April, 2015, namely: (10) Where a deduction under this section is claimed and allowed in respect of profits of any of the specified business, referred to in clause (c) of sub-section (8) of section 35AD, for any assessment year, no deduction shall be allowed under the provisions 35AD in relation to such specified business for the same or any other assessment year.. 7. In section 11 of the Income-tax Act, after sub-section (5), the following sub-sections shall be inserted with effect from the 1st day of April, 2015, namely: (6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this section in the same or any other previous year. (7) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996] and the said registration is in force for any previous year, then, nothing contained in section 10 [other than clause (1) and clause (23C) thereof] shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year.. 8. In section 12A of the Income-tax Act, in sub-section (2), the following provisos shall be inserted with effect from the 1st day of October, 2014, namely: Provided that where registration has been granted to the trust or institution under section 12AA, then, the provisions s 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year: Provided further that no action under section 147 shall be taken by the Assessing Officer in case of such trust or institution for any assessment year preceding the aforesaid assessment year only for non-registration of such trust or institution for the said assessment year: Provided also that provisions contained in the first and second proviso shall not apply in case of any trust or institution which was refused registration or the registration granted to it was cancelled at any time under section 12AA.. 33 of 1996.

11 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY of In section 12AA of the Income-tax Act, after sub-section (3), the following subsection shall be inserted with effect from the 1st day of October, 2014, namely: (4) Without prejudice to the provisions of sub-section (3), where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996] and subsequently it is noticed that the activities of the trust or the institution are being carried out in a manner that the provisions s 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) 13, then, the Principal Commissioner or the Commissioner may by an order in writing cancel the registration of such trust or institution: Provided that the registration shall not be cancelled under this sub-section, if the trust or institution proves that there was a reasonable cause for the activities to be carried out in the said manner In section 24 of the Income-tax Act, in clause (b), in the second proviso, for the words one lakh fifty thousand rupees, the words two lakh rupees shall be substituted with effect from the 1st day of April, In section 32AC of the Income-tax Act, with effect from the 1st day of April, 2015, (i) after sub-section (1), the following sub-sections shall be inserted, namely: (1A) Where an assessee, being a company, engaged in the business of manufacture or production of any article or thing, acquires and installs new assets and the amount of actual cost of such new assets acquired and installed during any previous year exceeds twenty-five crore rupees, then, there shall be allowed a deduction of a sum equal to fifteen per cent. of the actual cost of such new assets for the assessment year relevant to that previous year: Provided that no deduction under this sub-section shall be allowed for the assessment year commencing on the 1st day of April, 2015 to the assessee, which is eligible to claim deduction under sub-section (1) for the said assessment year. (1B) No deduction under sub-section (1A) shall be allowed for any assessment year commencing on or after the 1st day of April, ; (ii) in sub-section (2), after the words, brackets and figure allowed under subsection (1), the words, brackets, figure and letter or sub-section (1A) shall be inserted. 12. In section 35AD of the Income-tax Act, with effect from the 1st day of April, 2015, (a) in sub-section (3), after the words no deduction shall be allowed under the provisions of, the words, figures and letters section 10AA and shall be inserted; (b) in sub-section (5), (i) in clause (ah), the word and occurring at the end, shall be omitted; (ii) after clause (ah), the following clauses shall be inserted, namely: (ai) on or after the 1st day of April, 2014, where the specified business is in the nature of laying and operating a slurry pipeline for the transportation of iron ore; (aj) on or after the 1st day of April, 2014, where the specified business is in the nature of setting up and operating a semi-conductor wafer fabrication manufacturing unit, and which is notified by the Board in accordance with such guidelines as may be prescribed; and ; 12AA. 24. of section 32AC. of section 35AD.

12 12 THE GAZETTE OF INDIA EXTRAORDINARY [PART II of section (c) after sub-section (7), the following sub-sections shall be inserted, namely: (7A) Any asset in respect of which a deduction is claimed and allowed under this section shall be used only for the specified business, for a period of eight years beginning with the previous year in which such asset is acquired or constructed. (7B) Where any asset, in respect of which a deduction is claimed and allowed under this section, is used for a purpose other than the specified business during the period specified in sub-section (7A), otherwise than by way of a mode referred to in clause (vii) 28, the total amount of deduction so claimed and allowed in one or more previous years, as reduced by the amount of depreciation allowable in accordance with the provisions 32, as if no deduction under this section was allowed, shall be deemed to be the income of the assessee chargeable under the head Profits and gains of business or profession of the previous year in which the asset is so used. (7C) Nothing contained in sub-section (7B) shall apply to a company which has become a sick industrial company under sub-section (1) 17 of the Sick Industrial Companies (Special Provisions) Act, 1985, during the period specified in sub-section (7A). ; (d) in sub-section (8), in clause (c), after sub-clause (xi), the following subclauses shall be inserted, namely: (xii) laying and operating a slurry pipeline for the transportation of iron ore; (xiii) setting up and operating a semi-conductor wafer fabrication manufacturing unit notified by the Board in accordance with such guidelines as may be prescribed;. 13. In section 37 of the Income-tax Act, in sub-section (1), the Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted with effect from the 1st day of April, 2015, namely: Explanation 2. For the removal of doubts, it is hereby declared that for the purposes of sub-section (1), any expenditure incurred by an assessee on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to be an expenditure incurred by the assessee for the purposes of the business or profession In section 40 of the Income-tax Act, in clause (a), with effect from the 1st day of April, 2015, (a) in sub-clause (i), (I) for the portion beginning with the words during the previous year and ending with the words, brackets and figures sub-section (1) 200, the words, brackets and figures on or before the due date specified in sub-section (1) 139 shall be substituted; (II) for the proviso, the following proviso shall be substituted, namely: Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. ; (b) in sub-clause (ia), (I) for the portion beginning with the words any interest, commission or brokerage and ending with the words and brackets for carrying out any work 1 of of 2013.

13 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY of of of (including supply of labour for carrying out any work), the words thirty per cent. of any sum payable to a resident shall be substituted; (II) in the first proviso, after the words, brackets and figures sub-section (1) 139,, the words thirty per cent. of shall be inserted. 15. In section 43 of the Income-tax Act, in clause (5), in the proviso, in clause (e), for the words recognised association, the words and figures recognised association, which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 shall be substituted. 16. In section 44AE of the Income-tax Act, with effect from the 1st day of April, 2015, (i) for sub-section (2), the following sub-section shall be substituted, namely: (2) For the purpose of sub-section (1), the profits and gains from each goods carriage shall be an amount equal to seven thousand five hundred rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or an amount claimed to have been actually earned from the vehicle, whichever is higher. ; (ii) in the Explanation, for clause (a), the following clause shall be substituted, namely: (a) the expression goods carriage shall have the meaning assigned to it in section 2 of the Motor Vehicles Act, 1988;. 17. In section 45 of the Income-tax Act, in sub-section (5), after clause (b), the following proviso shall be inserted with effect from the 1st day of April, 2015, namely: Provided that any amount of compensation received in pursuance of an interim order of a court, Tribunal or other authority shall be deemed to be income chargeable under the head Capital gains of the previous year in which the final order of such court, Tribunal or other authority is made;. 18. In section 47 of the Income-tax Act, with effect from the 1st day of April, 2015, (a) after clause (viia), the following shall be inserted, namely: (viib) any transfer of a capital asset, being a Government Security carrying a periodic payment of interest, made outside India through an intermediary dealing in settlement of securities, by a non-resident to another non-resident. Explanation. For the purposes of this clause, Government Security shall have the meaning assigned to it in clause (b) 2 of the Securities Contracts (Regulation) Act, 1956; ; (b) after clause (xvi), the following shall be inserted, namely: (xvii) any transfer of a capital asset, being share of a special purpose vehicle to a business trust in exchange of units allotted by that trust to the transferor. Explanation. For the purposes of this clause, the expression special purpose vehicle shall have the meaning assigned to it in the Explanation to clause (23FC) In section 48 of the Income-tax Act, in the Explanation, in clause (v), for the words Consumer Price Index for urban non-manual employees, the words and brackets Consumer Price Index (Urban) shall be substituted with effect from the 1st day of April, In section 49 of the Income-tax Act, after sub-section (2AB), the following subsection shall be inserted with effect from the 1st day of April, 2015, (2AC) Where the capital asset, being a unit of a business trust, became the property of the assessee in consideration of a transfer as referred to in clause (xvii) of AE

14 14 THE GAZETTE OF INDIA EXTRAORDINARY [PART II of section 51. of section 54. of section 54EC. of section 54F. of section 56. of section 73. of section 80C. of section 80CCD. of section 80CCE. of section 80-IA. section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share referred to in the said clause In section 51 of the Income-tax Act, the following proviso shall be inserted with effect from the 1st day of April, 2015, namely: Provided that where any sum of money, received as an advance or otherwise in the course of negotiations for transfer of a capital asset, has been included in the total income of the assessee for any previous year in accordance with the provisions of clause (ix) of sub-section (2) 56, then, such sum shall not be deducted from the cost for which the asset was acquired or the written down value or the fair market value, as the case may be, in computing the cost of acquisition In section 54 of the Income-tax Act, in sub-section (1), for the words constructed, a residential house, the words constructed, one residential house in India shall be substituted with effect from the 1st day of April, In section 54EC, in sub-section (1), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2015, namely: Provided further that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees In section 54F of the Income-tax Act, in sub-section (1), for the words constructed, a residential house, the words constructed, one residential house in India shall be substituted with effect from the 1st day of April, In section 56 of the Income-tax Act, in sub-section (2), after clause (viii), the following clause shall be inserted with effect from the 1st day of April, 2015, namely: (ix) any sum of money received as an advance or otherwise in the course of negotiations for transfer of a capital asset, if, (a) such sum is forfeited; and (b) the negotiations do not result in transfer of such capital asset In section 73 of the Income-tax Act, in the Explanation, for the words the principal business of which is the business of banking, the words the principal business of which is the business of trading in shares or banking shall be substituted with effect from the 1st day of April, In section 80C of the Income-tax Act, in sub-section (1), for the words one lakh rupees, the words one hundred and fifty thousand rupees shall be substituted with effect from the 1st day of April, In section 80CCD of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2015, (i) for the words, figures and letters Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004, the words, figures and letters Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004 or, being an individual employed by any other employer shall be substituted; (ii) after sub-section (1), the following sub-section shall be inserted, namely: (1A) The amount of deduction under sub-section (1) shall not exceed one hundred thousand rupees In section 80CCE of the Income-tax Act, for the words one lakh rupees, the words one hundred and fifty thousand rupees shall be substituted with effect from the 1st day of April, In section 80-IA of the Income-tax Act, in sub-section (4), in clause (iv), in subclauses (a), (b) and (c), for the words, figures and letters the 31st day of March, 2014, the words, figures and letters the 31st day of March, 2017 shall respectively be substituted with effect from the 1st day of April, 2015.

15 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY In section 92B of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2015, (i) for the words deemed to be a transaction, the words deemed to be an international transaction shall be substituted; (ii) after the words determined in substance between such other person and the associated enterprise, the words where the enterprise or the associated enterprise or both of them are non-residents irrespective of whether such other person is a nonresident or not shall be inserted. 32. In section 92C of the Income-tax Act, in sub-section (2), after the second proviso, but before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2015, namely: "Provided also that where more than one price is determined by the most appropirate method, the arm's length price in relation to an international transaction or specified domestic transaction undertaken on or after the 1st day of April, 2014, shall be computed in such manner as may be prescribed and accordingly the first and second proviso shall not apply.". 33. In section 92CC of the Income-tax Act, after sub-section (9), the following subsection shall be inserted with effect from the 1st day of October, 2014, namely: (9A) The agreement referred to in sub-section (1), may, subject to such conditions, procedure and manner as may be prescribed, provide for determining the arm s length price or specify the manner in which arm s length price shall be determined in relation to the international transaction entered into by the person during any period not exceeding four previous years preceding the first of the previous years referred to in sub-section (4), and the arm s length price of such international transaction shall be determined in accordance with the said agreement In section 111A of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2015, (A) after the words unit of an equity oriented fund, the words or a unit of a business trust shall be inserted; (B) after the proviso, the following proviso shall be inserted, namely: Provided further that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of a business trust which were acquired by the assessee in consideration of a transfer as referred to in clause (xvii) In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2015, (a) in the proviso, occurring after clause (d), for the words being listed securities or unit, the words and brackets being listed securities (other than a unit) shall be substituted; (b) after the proviso, occurring after clause (d), the following proviso shall be inserted, namely: "Provided further that where the tax payable in respect of any income arising from the transfer of a long-term capital asset, being a unit of a Mutual Fund specified under clause (23D) 10, during the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, exceeds ten per cent. of the amount of capital gains, before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee."; (c) in the Explanation, clause (b) shall be omitted. 36. In section 115A of the Income-tax Act, in sub-section (1), in clause (a), with effect from the 1st day of April, 2015, (I) after sub-clause (iiab), the following sub-clause shall be inserted, namely: (iiac) distributed income being interest referred to in sub-section (2) of section 194LBA; ; of section 92B. 92C. 92CC. 111A A.

16 16 THE GAZETTE OF INDIA EXTRAORDINARY [PART II 115BBC. 115BBD. 115JC. of section 115JEE. of section 115-O. of section 115R. of section 115TA. (II) in item (BA), after the word, brackets, figures and letters sub-clause (iiab), the words, brackets, figures and letters or sub-clause (iiac) shall be inserted; (III) in item (D), after the word, brackets, figures and letters sub-clause (iiab), the word, brackets, figures and letters, sub-clause (iiac) shall be inserted. 37. In section 115BBC of the Income-tax Act, in sub-section (1), for clause (ii), the following clause shall be substituted with effect from the 1st day of April, 2015, namely: (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received in excess of the amount referred to in sub-clause (A) or sub-clause (B) of clause (i), as the case may be In section 115BBD of the Income-tax Act, in sub-section (1), the words, figures and letters for the previous year relevant to the assessment year beginning on the 1st day of April, 2012 or beginning on the 1st day of April, 2013 or beginning on the 1st day of April, 2014 shall be omitted with effect from the 1st day of April, In section 115JC of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2015, (a) in clause (i), the word and occurring at the end, shall be omitted; (b) in clause (ii), for the words, figures and letters under section 10AA, the words, figures and letters under section 10AA; and shall be substituted; (c) after clause (ii), the following clause shall be inserted, namely: (iii) deduction claimed, if any, under section 35AD as reduced by the amount of depreciation allowable in accordance with the provisions 32 as if no deduction under section 35AD was allowed in respect of the assets on which the deduction under that section is claimed In section 115JEE of the Income-tax Act, with effect from the 1st day of April, 2015, (A) in sub-section (1), for clause (b), the following clauses shall be substituted, namely: (b) section 10AA; or (c) section 35AD. ; (B) after sub-section (2), the following sub-section shall be inserted, namely: (3) Notwithstanding anything contained in sub-section (1) or subsection (2), the credit for tax paid under section 115JC shall be allowed in accordance with the provisions 115JD In section 115-O of the Income-tax Act, after the Explanation to sub-section (1A), the following sub-section shall be inserted with effect from the 1st day of October, 2014, namely: (1B) For the purposes of determining the tax on distributed profits payable in accordance with this section, any amount by way of dividends referred to in subsection (1) as reduced by the amount referred to in sub-section (1A) [hereafter referred to as net distributed profits], shall be increased to such amount as would, after reduction of the tax on such increased amount at the rate specified in sub-section (1), be equal to the net distributed profits In section 115R of the Income-tax Act, (a) after the Explanation to sub-section (2), the following sub-section shall be inserted with effect from the 1st day of October, 2014, namely: (2A) For the purposes of determining the additional income-tax payable in accordance with sub-section (2), the amount of distributed income referred therein shall be increased to such amount as would, after reduction of the additional income-tax on such increased amount at the rate specified in subsection (2), be equal to the amount of income distributed by the Mutual Fund. ; (b) sub-section (3A) shall be omitted with effect from the 1st day of April, In section 115TA of the Income-tax Act, sub-section (3) shall be omitted with effect from the 1st day of April, 2015.

17 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY After Chapter XII-F of the Income-tax Act, the following Chapter shall be inserted with effect from the 1st day of April, 2015, namely: Insertion of new Chapter XII-FA. CHAPTER XII-FA SPECIAL PROVISIONS RELATING TO BUSINESS TRUSTS 115UA. (1) Notwithstanding anything contained in any other provisions of this Act, any income distributed by a business trust to its unit holders shall be deemed to be of the same nature and in the same proportion in the hands of the unit holder as it had been received by, or accrued to, the business trust. (2) Subject to the provisions 111A and section 112, the total income of a business trust shall be charged to tax at the maximum marginal rate. (3) If in any previous year, the distributed income or any part thereof, received by a unit holder from the business trust is of the nature as referred to in clause (23FC) 10, then, such distributed income or part thereof shall be deemed to be income of such unit holder and shall be charged to tax as income of the previous year. (4) Any person responsible for making payment of the income distributed on behalf of a business trust to a unit holder shall furnish a statement to the unit holder and the prescribed authority, within such time and in such form and manner as may be prescribed, giving the details of the nature of the income paid during the previous year and such other details as may be prescribed In section 116 of the Income-tax Act, (i) after clause (a), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2013, (aa) Principal Directors General of Income-tax or Principal Chief Commissioners of Income-tax, ; (ii) after clause (b), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2013, (ba) Principal Directors of Income-tax or Principal Commissioners of Income-tax,. 46. In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the figures and letter "234C", the figures and letter "234E" shall be inserted with effect from the 1st day of October, In section 133A of the Income-tax Act, with effect from the 1st day of October, 2014, (I) after sub-section (2), the following sub-section shall be inserted, namely: (2A) Without prejudice to the provisions of sub-section (1), an incometax authority acting under this sub-section may for the purpose of verifying that tax has been deducted or collected at source in accordance with the provisions under sub-heading B of Chapter XVII or under sub-heading BB of Chapter XVII, as the case may be, enter, after sunrise and before sunset, any office, or any other place where business or profession is carried on, within the limits of the area assigned to him, or any place in respect of which he is authorised for the purposes of this section by such income-tax authority who is assigned the area within which such place is situated, where books of account or documents are kept and require the deductor or the collector or any other person who may at that time and place be attending in any manner to such work, (i) to afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available at such place, and (ii) to furnish such information as he may require in relation to such matter. ; Tax on income of unit holder and business trust A.

18 18 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Insertion of new section 133C. Power to call for information by prescribed income-tax authority of section 140. (II) in sub-section (3), in clause (ia), in the proviso, for clause (b), the following clause shall be substituted, namely: (b) retain in his custody any such books of account or other documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General or the Principal Commissioner or the Commissioner or the Principal Director or the Director therefor, as the case may be, ; (III) in sub-section (3), the following proviso shall be inserted, namely: Provided that no action under clause (ia) or clause (ii) shall be taken by an income-tax authority acting under sub-section (2A) After section 133B of the Income-tax Act, the following shall be inserted with effect from the 1st day of October, 2014, namely: 133C. The prescribed income-tax authority may, for the purposes of verification of information in its possession relating to any person, issue a notice to such person requiring him, on or before a date to be specified therein, to furnish information or documents verified in the manner specified therein, which may be useful for, or relevant to, any inquiry or proceeding under this Act. Explanation. In this section, the term proceeding shall have the meaning assigned to it in clause (b) of the Explanation to section 133A In section 139 of the Income-tax Act, with effect from the 1st day of April, 2015, (a) in sub-section (4C), (i) after clause (e), the following clauses shall be inserted, namely: (ea) Mutual Fund referred to in clause (23D) 10; (eb) securitisation trust referred to in clause (23DA) 10; (ec) venture capital company or venture capital fund referred to in clause (23FB) 10; ; (ii) after the words or infrastructure debt fund, the words or Mutual Fund or securitisation trust or venture capital company or venture capital fund shall be inserted; (b) after sub-section (4D), the following sub-section shall be inserted, namely: (4E) Every business trust, which is not required to furnish return of income or loss under any other provisions of this section, shall furnish the return of its income in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply if it were a return required to be furnished under sub-section (1) In section 140 of the Income-tax Act, with effect from the 1st day of October, 2014, (i) in the marginal heading, for the word signed, the word verified shall be substituted; (ii) for the words signed and verified, wherever they occur, the word verified shall be substituted; (iii) for the words sign and verify, wherever they occur, the word verify shall be substituted; (iv) in clause (a), (a) in sub-clause (iv), for the word sign, the word verify shall be substituted;

19 SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 19 (b) in the proviso, for the word signing, the word verifying shall be substituted. 51. For section 142A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of October, 2014, namely: 142A. (1) The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him. Substitution of new section for section 142A. Estimation of value of assets by Valuation Officer. (2) The Assessing Officer may make a reference to the Valuation Officer under sub-section (1) whether or not he is satisfied about the correctness or completeness of the accounts of the assessee. 27 of (3) The Valuation Officer, on a reference made under sub-section (1), shall, for the purpose of estimating the value of the asset, property or investment, have all the powers that he has under section 38A of the Wealth-tax Act, (4) The Valuation Officer shall, estimate the value of the asset, property or investment after taking into account such evidence as the assessee may produce and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee. (5) The Valuation Officer may estimate the value of the asset, property or investment to the best of his judgment, if the assessee does not co-operate or comply with his directions. (6) The Valuation Officer shall send a copy of the report of the estimate made under sub-section (4) or sub-section (5), as the case may be, to the Assessing Officer and the assessee, within a period of six months from the end of the month in which a reference is made under sub-section (1). (7) The Assessing Officer may, on receipt of the report from the Valuation Officer, and after giving the assessee an opportunity of being heard, take into account such report in making the assessment or reassessment. 27 of Explanation. In this section, Valuation Officer has the same meaning as in clause (r) 2 of the Wealth-tax Act, In section 145 of the Income-tax Act, with effect from the 1st day of April, 2015, (i) in sub-section (2), for the words accounting standards, the words income computation and disclosure standards shall be substituted; of section 145. (ii) in sub-section (3), for the words, brackets and figure or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the words, brackets and figure has not been regularly followed by the assessee, or income has not been computed in accordance with the standards notified under subsection (2) shall be substituted. 53. In section 153 of the Income-tax Act, in Explanation 1, after clause (iii), the following clause shall be inserted with effect from the 1st day of October, 2014, namely: of section 153. (iv) the period commencing from the date on which the Assessing Officer makes a reference to the Valuation Officer under sub-section (1) 142A and

20 20 THE GAZETTE OF INDIA EXTRAORDINARY [PART II ending with the date on which the report of the Valuation Officer is received by the Assessing Officer, or. of section 153B. 54. In section 153B of the Income-tax Act, in the Explanation, after clause (ii), the following clause shall be inserted with effect from the 1st day of October, 2014, namely: (iia) the period commencing from the date on which the Assessing Officer makes a reference to the Valuation Officer under sub-section (1) 142A and ending with the date on which the report of the Valuation Officer is received by the Assessing Officer, or. of section 153C. 194A. Insertion of new section 194DA. Payment in respect of life insurance policy. 55. In section 153C of the Income-tax Act, in sub-section (1), for the words, figures and letter and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions 153A, occurring at the end but before the first proviso, the words, figures, letters and brackets and that Assessing Officer shall proceed against each such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in sub-section (1) 153A shall be substituted with effect from the 1st day of October, In section 194A of the Income-tax Act, in sub-section (3), after clause (x), the following clause shall be inserted with effect from the 1st day of October, 2014, namely: (xi) to any income by way of interest referred to in clause (23FC) After section 194D of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2014, namely: 194DA. Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of two per cent.: Provided that no deduction under this section shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees.. Insertion of new section 194LBA. Certain income from units of a business trust. 58. After section 194LB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2014, namely: 194LBA. (1) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) 10, is payable by a business trust to its unit holder being a resident, the person responsible for making the payment shall at the time of credit of such payment to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent. (2) Where any distributed income referred to in section 115UA, being of the nature referred to in clause (23FC) 10, is payable by a business trust to its unit holder, being a non-resident, not being a company or a foreign company, the person responsible for making the payment shall at the